jonno
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nil satis nisi optimum
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Post by jonno on Aug 25, 2021 8:31:11 GMT
First loan issued on Connective Lending has a completion date of today so interesting to see what happens with this loan and what updates we receive about it. Time to find out a lot more about how well the site works. There is an update on the relevant loan on the platform. Much in line with many predictions. Given my previous experience of renewing loans on other platforms I'll not be renewing any on this platform for the foreseeable future. I used to hold the view that payment of interest to renew a loan was a positive sign, but now I'm not so sure. All FS investors will understand (if not necessarily agree) with my position.
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toffeeboy
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Post by toffeeboy on Aug 25, 2021 9:59:49 GMT
Now the questions can start for connectivelending 1) How long have you known this loan was going to rollover? 2) The loan is now late, is the borrower being charged a default interest rate? 3) How long do you give borrowers to renew after the completion date, allowing time after the completion date makes this date unreliable. 4) Is the asset revalued when a loan is renewed?
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Post by Penny Pincher on Aug 25, 2021 11:15:19 GMT
Now the questions can start for connectivelending 1) How long have you known this loan was going to rollover? 2) The loan is now late, is the borrower being charged a default interest rate? 3) How long do you give borrowers to renew after the completion date, allowing time after the completion date makes this date unreliable. 4) Is the asset revalued when a loan is renewed? Most of these questions are answered by clause 7.3 of the Terms and Conditions. This is my interpretation of those term;
2) No default interest rate is charged. The options are repay, default or renew for a further 6 months.
3) Three days but with discretion. 4) Yes, the asset is revalued and the borrower is informed. Presumably investors are informed of the new value when/if the renewal loan is posted for investment.
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toffeeboy
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Post by toffeeboy on Aug 25, 2021 11:37:08 GMT
Now the questions can start for connectivelending 1) How long have you known this loan was going to rollover? 2) The loan is now late, is the borrower being charged a default interest rate? 3) How long do you give borrowers to renew after the completion date, allowing time after the completion date makes this date unreliable. 4) Is the asset revalued when a loan is renewed? Most of these questions are answered by clause 7.3 of the Terms and Conditions. This is my interpretation of those term;
2) No default interest rate is charged. The options are repay, default or renew for a further 6 months.
3) Three days but with discretion. 4) Yes, the asset is revalued and the borrower is informed. Presumably investors are informed of the new value when/if the renewal loan is posted for investment.
2) Actually worse than that, CL can waive any interest due after the due date if they wish per 7.2 (a) 3) So the completion date is techincially the date given plus 3 days 4) I don't see current investors being informed of the new value, well not before they have rolled over, it looks like if the renewal box is ticked you stay in the loan and unrenewed goes up for sale when we all see a new valuation.
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Post by Badly Drawn Stickman on Aug 25, 2021 13:01:55 GMT
There is an update on the relevant loan on the platform. Much in line with many predictions. Given my previous experience of renewing loans on other platforms I'll not be renewing any on this platform for the foreseeable future. I used to hold the view that payment of interest to renew a loan was a positive sign, but now I'm not so sure. All FS investors will understand (if not necessarily agree) with my position. I would mostly agree, the counter viewpoint would be that renewal is probably not that unusual from a borrower stance. If the asset value and platform are both trustworthy then probably one renewal is likely to be fairly common. I would be interested to hear from connectivelending how they view it. I am keeping a relatively open mind at this point. Next one is due tomorrow so may give a clearer picture.
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Post by df on Aug 25, 2021 13:36:20 GMT
Given my previous experience of renewing loans on other platforms I'll not be renewing any on this platform for the foreseeable future. I used to hold the view that payment of interest to renew a loan was a positive sign, but now I'm not so sure. All FS investors will understand (if not necessarily agree) with my position. I would mostly agree, the counter viewpoint would be that renewal is probably not that unusual from a borrower stance. If the asset value and platform are both trustworthy then probably one renewal is likely to be fairly common. I would be interested to hear from connectivelending how they view it. I am keeping a relatively open mind at this point. Next one is due tomorrow so may give a clearer picture. In my memory, renewal is the most common scenario and many of them are renewed multiple times. I have all my green buttons on for now - we'll see what happens.
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Post by df on Aug 25, 2021 14:03:38 GMT
Most of these questions are answered by clause 7.3 of the Terms and Conditions. This is my interpretation of those term;
2) No default interest rate is charged. The options are repay, default or renew for a further 6 months.
3) Three days but with discretion. 4) Yes, the asset is revalued and the borrower is informed. Presumably investors are informed of the new value when/if the renewal loan is posted for investment.
2) Actually worse than that, CL can waive any interest due after the due date if they wish per 7.2 (a) 3) So the completion date is techincially the date given plus 3 days 4) I don't see current investors being informed of the new value, well not before they have rolled over, it looks like if the renewal box is ticked you stay in the loan and unrenewed goes up for sale when we all see a new valuation. 1) Normally, pawnbroking loans don't include contacting borrowers prior to deadline. It's much more straight forward than SME or property. In effect, borrower sells the item to lender with the right to buy it back. If they don't turn up with the money to renew or buy it back pawnbroker sells the item. 4) The value of bling is quite stable. Things like watches, jewellery etc. don't normally depreciate - so I expect the value on renewal be approximately the same.
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Aug 26, 2021 14:09:26 GMT
Next due loan now flagged as renewing and relaunching tomorrow connectivelending - Id already set mine to renew as an experiment and system seems to have locked the green button. Is this a bug as the email notification implies I have the option to change settings?
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Post by connectivelending on Aug 26, 2021 16:13:09 GMT
Next due loan now flagged as renewing and relaunching tomorrow connectivelending - Id already set mine to renew as an experiment and system seems to have locked the green button. Is this a bug as the email notification implies I have the option to change settings? Hi Ilmoro, You do have the option to select if you wish to rollover your investment into the new loan for up to 1-hour before the renewal takes place. After this time the original loan is frozen and the option to rollover is no longer available. Due to a system amendment, any lenders who have selected to rollover their investment in this loan, please login again to check and make sure the renewal toggle has been selected to the correct position. This is due to the possibility that some lenders may be affected due to our recent system amendments. We do apologise for any inconvenience this has caused. We will also follow-up shortly regarding some of the comments posted above. Kind regards Connective Lending
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Post by connectivelending on Aug 26, 2021 19:10:22 GMT
Dear All, Daniel Grimes here. I was asked to read some posts and I have also had the misfortune of reading some of the threads on some failed platforms ( I cannot make further comment ). It has prompted me to make a short statement in relation to the comments that mention FS and to help some users garner some understanding and trust in our platform and the people who run it.
1 : Noman did start Funding Secure so there is a historical link. Had I been involved in any company where decisions were being made that I had no knowledge or control over then I would have left that company with my integrity intact, if only in my own eyes. Because of the fact that Noman started Funding Secure and was the technical brain behind the company many members have noticed that the platform has similarities. I just wanted to say that this is where the similarity ends. We are not Funding Secure. I have been a pawnbroker at the same limited company since the age of 23 and I am now 48. I have opened other businesses along the way, as you will no doubt be aware in Luxury Watches etc., and I have only been able to do that due in no small part to my track record of trust, integrity and a steady, but reliable, record of non failure in companies that I have and still run. When Noman approached me I made it very clear that I would not be involved in any company that I did not have the decision making power over lending decisions and we both had the same vision. Furthermore I would not join someone in business that I did not think had a similar vision and integrity. We take the responsibility of being custodians of investor money very, very seriously and our driven business model is quite simple : To offer loans that get paid back. Whether this is from repayment by borrowers or disposal of assets in a short and orderly fashion then we know that investors will be happy and we will be successful.
2 : To answer any fears on renewals, which having read some forum posts elsewhere I can completely understand, I would kindly ask you all to just look at the asset value. We provide as much information as needed for any users conversant in using the internet to be able to value the assets reasonably accurately themselves and we always, always take possession of the asset. (1st rule of pawnbroking!) In Pawnbroking there are no affordability tests carried out on borrowers because in default a borrower does not get in debt or have their credit scores affected. Their asset is sold to repay the debt and any surplus is given back to them. The only factors that are really needed in the offering of these style loans is : In default, will the speedy sale of the asset, for a fair and reasonable market price satisfy :
A : The amount loaned,
B : The interest earned by investors in that previous 6 months and another possible 2-3 months if disposal takes longer (eg Auction Dates),
C : The admin fee earned by the Platform,
If the answer to those questions are yes and there is still some equity left over then you can satisfy yourself that the loan is as secure as can be possible within the business model and make your decision as to whether you invest based on these risk factors.
3 : It is very usual for pawnbroking loans to be renewed and would be expected in a good business though this does not need to reflect badly on the borrower because we do not need to look at affordability. We only need to look at the value of the asset and ask the 3 questions above.
I understand many of you will already have a very good understanding of this so forgive me for being verbose however if it helps some with more knowledge so as to be able make an informed decision then I hope it helps.
Kind regards Daniel Grimes
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toffeeboy
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Post by toffeeboy on Aug 27, 2021 15:13:22 GMT
Dear All, Daniel Grimes here. I was asked to read some posts and I have also had the misfortune of reading some of the threads on some failed platforms ( I cannot make further comment ). It has prompted me to make a short statement in relation to the comments that mention FS and to help some users garner some understanding and trust in our platform and the people who run it. 1 : Noman did start Funding Secure so there is a historical link. Had I been involved in any company where decisions were being made that I had no knowledge or control over then I would have left that company with my integrity intact, if only in my own eyes. Because of the fact that Noman started Funding Secure and was the technical brain behind the company many members have noticed that the platform has similarities. I just wanted to say that this is where the similarity ends. We are not Funding Secure. I have been a pawnbroker at the same limited company since the age of 23 and I am now 48. I have opened other businesses along the way, as you will no doubt be aware in Luxury Watches etc., and I have only been able to do that due in no small part to my track record of trust, integrity and a steady, but reliable, record of non failure in companies that I have and still run. When Noman approached me I made it very clear that I would not be involved in any company that I did not have the decision making power over lending decisions and we both had the same vision. Furthermore I would not join someone in business that I did not think had a similar vision and integrity. We take the responsibility of being custodians of investor money very, very seriously and our driven business model is quite simple : To offer loans that get paid back. Whether this is from repayment by borrowers or disposal of assets in a short and orderly fashion then we know that investors will be happy and we will be successful. 2 : To answer any fears on renewals, which having read some forum posts elsewhere I can completely understand, I would kindly ask you all to just look at the asset value. We provide as much information as needed for any users conversant in using the internet to be able to value the assets reasonably accurately themselves and we always, always take possession of the asset. (1st rule of pawnbroking!) In Pawnbroking there are no affordability tests carried out on borrowers because in default a borrower does not get in debt or have their credit scores affected. Their asset is sold to repay the debt and any surplus is given back to them. The only factors that are really needed in the offering of these style loans is : In default, will the speedy sale of the asset, for a fair and reasonable market price satisfy : A : The amount loaned, B : The interest earned by investors in that previous 6 months and another possible 2-3 months if disposal takes longer (eg Auction Dates), C : The admin fee earned by the Platform, If the answer to those questions are yes and there is still some equity left over then you can satisfy yourself that the loan is as secure as can be possible within the business model and make your decision as to whether you invest based on these risk factors. 3 : It is very usual for pawnbroking loans to be renewed and would be expected in a good business though this does not need to reflect badly on the borrower because we do not need to look at affordability. We only need to look at the value of the asset and ask the 3 questions above. I understand many of you will already have a very good understanding of this so forgive me for being verbose however if it helps some with more knowledge so as to be able make an informed decision then I hope it helps. Kind regards Daniel Grimes Thanks Daniel, having read other threads on this forum I am sure you have seen how appreciative us members are when the custodians of our funds take the time to converse with us and answer any questions that we have. Also the lack of trust formed when this is not the case as seen on many of the failed sites.
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Greenwood2
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Post by Greenwood2 on Aug 27, 2021 17:49:44 GMT
They seem to have the 'usual' problem that if you withdraw the amount they say you have in your account it is too much and you have to withdraw a penny less. Rounding errors but irritating, quote the amount that you can withdraw, round down the amount displayed on the account it's not rocket science.
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toffeeboy
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Post by toffeeboy on Aug 31, 2021 16:44:47 GMT
First loan issued on Connective Lending has a completion date of today so interesting to see what happens with this loan and what updates we receive about it. Time to find out a lot more about how well the site works. There is an update on the relevant loan on the platform. Much in line with many predictions. And another update today.
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Post by df on Aug 31, 2021 17:06:13 GMT
There is an update on the relevant loan on the platform. Much in line with many predictions. And another update today. Partial payment of interest is a good sign. It means that the borrower is committed to renewal and it is in lenders' interest to have as many renewals as possible before the security goes on sale.
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Post by df on Aug 31, 2021 17:28:53 GMT
They seem to have the 'usual' problem that if you withdraw the amount they say you have in your account it is too much and you have to withdraw a penny less. Rounding errors but irritating, quote the amount that you can withdraw, round down the amount displayed on the account it's not rocket science. I've adopted the policy of having a constant 1p cash drag on CL
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